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What does continuous compounding mean?

Anonymous

∙ 11y ago

Updated: 4/28/2022

Continuous compounding is the process of calculating interest and adding it to existing principal and interest at infinitely short time intervals. When interest is added to the principal, compound interest arise.

Wiki User

∙ 11y ago

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Continue Learning about Other Math

What is the continuous compounding rate equivalent to an effective interest rate of 18 percent?

2

What does extemporaneous compounding mean?

preparing medication for a specific patient

Is the year the house was built an example of a continuous variable?

What is a CONTINUOUS VARIABLE?!? If you mean a CONSTANT, then yes. Read your text. (signed) Your Teacher

Why would you use a compounding interest calculator?

You would use a compounding interest calculator in order to determine how quickly a certain amount of money will grow due to compounding interest. It is useful for determining how much to save and invest over several years.

Does compounding always reduce the principal?

false

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